War for talent swells new starter City pay packets 

Pay packets in the Square Mile are bulging as banks, insurers and brokers try to outbid each other to lure top talent amid a tight jobs market, reveals a new survey released today.

Finance workers that switch employers received an average 25 per cent pay bump in the three months to June, according to recruiter Morgan McKinley.

The prospect of trousering a pay rise has triggered a surge in the number of workers looking for a new role in the City.

Available candidates hit 23,362 in the three months to June, Morgan McKinley said.

A shortage of workers caused by the pandemic prompting people to re-assess their work-life balance has meant finance firms have had to strengthen incentives to attract and retain recruits. 

“Competition between companies to secure top talent has propelled pay growth and many are moving fast to recruit top and fresh talent to help them deliver their services and avoid a bidding war,” Hakan Enver, managing director at Morgan McKinley UK, said.

“Now is a better time than ever to consider a new role,” he added.

Finance firms are also scrambling to expand their workforce to capitalise on profitable opportunities. Vacancies swelled 46 per cent over the last year.

However, on a monthly basis, vacancies edged lower, signalling wider economic headwinds are spilling over to the financial services sector.

“A tunnel of bad news stretches before us… the economic outlook is darkening and confidence flatlining amongst the City,” Enver added.

NatWest, Barclays and Lloyds have raised lower-paid employees’ wages to cushion the impact of the cost of living squeeze.